Logistics Holdings ventures into precast plant in Iskandar

JV will splurge $5m in manufacturing facility.

According to a release, Logistics Holdings Limited intends to venture into the precast  business and set up a precast plant in Iskandar region, Johor, Malaysia.

The Group’s wholly owned subsidiary, Logistics Investment Pte Ltd, has teamed up with an unrelated joint venture partner, Concrete Innovators Co Pte Ltd, to incorporate a joint venture company, CCL Precast Pte Ltd, with Logistics Investment holding a 80% stake.

Set up with an initial capital of S$100,000, CCL Precast intends to invest approximately S$5 million in aggregate to build a precast products manufacturing facility with an annual capacity of 21,000 m3 on a land plot of approximately 7 acres (2.83 hectares or 28,328 sq m) in Seelong, Iskandar region, Johor.

The construction of the proposed precast plant is expected to complete in mid-2014. It is expected that the total investment, by equity and/or debt, in CCL Precast will be approximately S$5.0 million, which will be funded through the Company’s initial public offering proceeds, bank borrowings and/or the Group’s internal resources. 

Mr Phua Lam Soon, PBM, Chief Executive Officer of Logistics Holdings, commented, “Since our listing on the stock exchange, we have set out to explore joint ventures and strategic alliances in related business so as to open new revenue streams for the Group.

We are delighted to have started our property development business in June 2013 and now venturing into the precast business.”